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Credit Market: A Greater Impact Than the Stock Market Speech

Autor:   •  April 26, 2012  •  Essay  •  421 Words (2 Pages)  •  1,667 Views

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Credit Market: A greater impact than the Stock Market

A Complex Tangled Mess

Current Market Turmoil

-Credit Default Swaps (CDS)

-Failing investment companies and banks

-Frozen lending

Credit Default Swaps (CDS)

-Act as insurance on bonds and other debt

-Not guaranteed, A lack of protection

-Currently $62 Trillion compared to $1 Trillion a decade ago

Failing Investment Companies & Banks

Frozen Lending

-Fallen values

-Lack of interbank trading

-Loss of liquidity

A Complex Tangled Mess

Current Market Turmoil

-Credit Default Swaps (CDS)

-Failing investment companies and banks

-Frozen lending

Credit Default Swaps (CDS)

-Act as insurance on bonds and other debt

-Not guaranteed, A lack of protection

-Currently $62 Trillion compared to $1 Trillion a decade ago

Failing Investment Companies & Banks

Frozen Lending

-Fallen values

-Lack of interbank trading

-Loss of liquidity

“Have you ever tried to undo a bunch of

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